03 February 2025 , 13:55
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Over the weekend the erratic US President Donald Trump announced 25% trade taxes on goods coming from America’s nearest neighbours and largest trade partners - Canada and Mexico.
Downing Street has insisted Donald Trump can be trusted despite sparking fears of global trade war and imposing massive tariffs on Canada.
Over the weekend the erratic US President announced 25% trade taxes on goods coming from America’s nearest neighbours and largest trade partners - Canada and Mexico. Just hours ago he also threatened to impose tariffs on more countries - including the UK.
In comments overnight Trump said tariffs will "definitely" be placed on goods from the EU, saying America’s trade deficit with the bloc is "an atrocity" that means "they take almost nothing and we take everything from them".
He claimed the UK is "out of line" when he was asked about slapping tariffs on Britain. But he suggested the situation "can be worked out" with Mr Starmer, who he called "very nice".
Experts have previously warned the UK could face a £22billion hit to exports if Trump does impose tariffs on goods from Britain entering the US. But senior UK ministers - including Chancellor Rachel Reeves - have previously suggested the UK could avoid US tariffs because America does not have a trade deficit with Britain.
Asked whether the US President could be trusted, the PM’s official spokesman said on Monday: "Yes, the PM has had a really constructive set of early conversations with President Trump and looks forward to working with him to deepen our trade and investment, security and defence relationship.”
He said the UK is an "indispensible ally" to the UK, adding: "We’ve got a fair and balanced trading relationship which benefits both sides of the Atlantic.
"It’s worth around £300 billion and we are each other’s single largest investors, with £1.2 trillion invested in each other’s economies."
Pressed on whether they were confident the UK could avoid tariffs, they said the UK was committed to "free and open trade". But they declined to be drawn on Trump’s controversial decision to impose tariffs on Canada, saying they would not comment on other countries’ relationships with the US.